What does the bid cost per month?

How we calculate

In a bidding war it is easy to think in lump sums: "what is another 200 000?" But what you actually live with is the monthly cost. Since the down payment stays the same whatever the bid, the whole increase goes onto the loan, and it shows up straight away in kr/month.

Each hundred thousand has a monthly price

At 2.7 percent interest and 2 percent amortisation, an extra 100 000 kr of loan costs about 390 kr a month. It sounds small in the moment, but over a few hundred thousand it becomes the margin that decides whether the budget holds if rates rise. Always stress-test the winning bid.

The down payment has to keep up

You can borrow at most 90 percent of the price, so the down payment must be at least 10 percent of your bid, not of the asking price. Bid high without more cash and the bid can fall on the mortgage cap.